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Hitachi eyes expansion in Saudi Arabia

Japanese firm strengthens sales and marketing to snare more infrastructure projects.

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Hitachi, News

Hitachi has commenced operation of Hitachi Saudi Arabia, Ltd. with the aim of expanding the Hitachi Group's business in the kingdom.

Hitachi Saudi Arabia was established as a result of a merger combining Hitachi's Riyadh Branch with Hitachi Plant Saudi Arabia, Ltd.

The new group will strengthen Hitachi’s sales and marketing functions and work in collaboration with a wide range of customers in the infrastructure and other fields. At the same time, it will help accelerate measures for globalizing Hitachi's Social Innovation Business.

Hitachi focuses on developing its Social Innovation Business in the global market as set forth in its 2015 Mid-term Management Plan, with an eye to raising the overseas sales ratio of the business to 50% by fiscal 2015.

The Middle Eastern Gulf States have maintained GDP growth of 3 to 5% on the back of abundant stocks of natural resources. Saudi Arabia, in particular, is the largest market in the region.

The country is making large-scale investments for conserving energy, securing water resources, and developing transportation infrastructure, as well as in telecommunications infrastructure and the healthcare fields.

Most recently, Hitachi and Toray Industries, Inc. concluded a memorandum of understanding (MOU) for testing a "Mega-ton Water System," a large-scale, high-efficiency seawater desalination system, with Saline Water Conversion Corporation, a Saudi government-owned seawater desalination company, and Abunayyan Trading Company Limited, another water- and energy-related company also in Saudi Arabia.

Hitachi's activities in Saudi Arabia dates back to 1966, when the company launched a business dealing in general industrial machinery, power generators, and other equipment in the country.

The Hitachi's representative office was opened in Riyadh in 1978.
Today, Hitachi has joint ventures with local Saudi companies include Hitachi Saihati Engineering Services Co., Ltd., which provides maintenance for mainly compressors and industrial machinery, and Hitachi T&D Systems Saudi Arabia Ltd., which conducts business in power distribution mainly through the provision of gas-insulated switchgear.

Three other Hitachi Group companies also have business bases in Saudi Arabia. In all, the Hitachi Group has six bases in Saudi Arabia with a staff of approximately 550 employees, including Hitachi Saudi Arabia.

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